WAS THAT IT FOR THE INTERMEDIATE CYCLE DECLINE IN THE STOCK MARKET?
Traders need to be careful for the rest of the week. In a natural market the daily cycle should still have further to fall and after a bounce there should be one more leg down. But as I have warned over and over, we no longer have free markets. We have not had free markets since the SEC banned short sales on financials back in 2008. So it’s entirely possible the PPT intervened today and that’s all we are going to get for an intermediate cycle low.
This is why I don’t short stocks. You are fighting an opponent that has a printing press.
If support at 2040 is recovered tomorrow I would be inclined to assume the rest of the intermediate cycle decline has been prematurely aborted and go back into leveraged funds for the next leg up in this new 7 year cycle.
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Isn’t this how bear flag work?
I would like to see a lot weaker bounce if this was going to be a bear flag.
I would not advice shorting assuming that the market has further to fall. The PPT may have aborted the rest of the ICL.
Yes, bears need to be very cautious here.
At the close today at 4 PM was a massive volume of 84.000 contracts coming from somewhere breaking up 2025, trading AH in the 2030’s.
Gary, I think you are almost certainly right. Whenever you get the all-white candle after a big move down and it produces a swing low, it’s lights out for the decline. Look at all the past bottoms after the sharp selloffs. Do you mean 2040 intraday or as a close for your buy signal?
I’m going to say a close above 2040.
If it were a natural drop it should drop to the 1970-1980 area before bouncing back up, today’s vertical straight up the wall long candle up sure looks like an abortion of a natural fall alright.
PPT for President!
PPT rescue talk = so easily to anticipate its resumption, just as it was easy to anticipate stocks’ snap-back action on Monday.
There was no way stocks could have fallen further before a bounce. It would have run against statistics.
Alex, I agree with you on the bounce we’re having. Over the next week or two I’m not sure, but I’m positive we’re going down here. The only way we get to the next level of money printing (and dept write off) is the people of the world finally finds out what a state were in. Brexit is the scapegoat for what needs to happen, a crisis. Then they print money and rain it from the sky
If we had free markets then yes we absolutely should have one more leg down before a final ICL. The daily cycle is way to short to have bottomed on Monday.
However, we haven’t had free markets since QE1 began.
I would not be trying to short here. Very dangerous in my opinion.
Watch the euro. If it has bottomed then everything is going back up.
yes, indeed, Jacob!
watch out the JAPANESE crisis to come after elections on Sunday July 10.
had it not been for brexit, we would still have the Japanese crisis.
UK politicians and the Queen may find a solution to brexit to annul it (maybe a rare, unusual Royal decree that UK shall remain part of EU no matter what – a prerogative of the Sovereign) but even so the market will get freaky about Japan’s economic problems post-July elections.
Yeah, japan has to crumble soon, I believe that, but I don’t think brexit gets put behind us. Greece has a lot of debt to pay soon also.